The Paris Club has agreed to reschedule $1.2 billion of Jordan’s $3.8 billion debts to member states. The new agreement allows Jordan to pay back bilateral loans over 22 years with a 12-year grace period, stated a Club release. The Kingdom’s pay back schedule for export loans has been extended over a 20-year period with a five-year grace period.
The two sides agreed that up to 30 percent of Jordan’s debt to the Club could be substituted with investments or development projects under future bilateral agreements with club members.
This is the first time that the Paris Club rescheduled a country’s outstanding debts for a period exceeding its economic reforms program agreed with the International Monetary Fund (IMF). The Kingdom’s reform program closes in mid-2004 but has until the of 2007 to repay its debt to the Club.
The Paris Club was formed in 1956. It is an informal group of creditor governments from industrialized countries. It meets on a monthly basis in Paris with debtor countries in order to agree with them on payment restructures. Club members participating in the reorganization of Jordan's debt are governmental representatives from Austria, Belgium, Canada, Denmark, France, Germany, Italy, Japan, Spain, Switzerland and the United Kingdom. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
